Consumer sector may not perform for sometime: Sangeeta Purushottam, Nine Rivers Capital

In a chat with ET Now, Sangeeta Purushottam, Managing Director, Nine Rivers Capital, shares his views on the consumer space.

ET Now: What do you make of the recent price action and volume action in some of the consumer names?

Sangeeta Purushottam: We saw a similar trend post December. This market is very sharply divided on valuation. So, anything which had visibility of earnings is now trading at high multiples. Moreover, there is fair amount of value emerging in the other sectors. For example, on valuation basis, many of the PSU banks are trading at almost close to 5-year lows. Same has been the trend in capital goods or infrastructure.

So, we have a whole set of beaten down sectors and we have sectors which have performed. If we see a rally from lows or if something positive emerges, we will see the reversal happening. The so called safe sectors will not perform for a while and money will flow back into the beaten down sectors. So, that is the phase we are going through.